Tech Surge: Oracle Propels Market to Record Highs

The U.S. stock market witnessed a significant boost as the S&P 500 and Nasdaq achieved intraday record highs, driven by lower-than-anticipated inflation figures. This trend suggests that the Federal Reserve might stay on course with rate cuts. A noteworthy contribution to this surge came from Oracle, whose impressive performance elevated market sentiment.

In August, producer prices dropped unexpectedly, providing further evidence that inflation might be cooling, thereby strengthening the prospects of interest rate cuts. This sentiment was reflected in the FedWatch tool, showing a 90% probability of a 25-basis-point reduction at the upcoming Federal Reserve meeting.

In the tech sector, Oracle's forecast propelled its stock to a record high, positively impacting semiconductor companies. Nvidia, AMD, and Broadcom recorded significant gains. While energy stocks benefited from these developments, a few consumer discretionary stocks pulled down the Dow. As markets turn their focus to consumer price data, the overall outlook remains cautiously optimistic.